Performance-based pay raises coming back to Ford
Filed under: Ford, Earnings/Financials
Cost-of-living pay increases are nice and all, but after you’ve invested your heart and soul in a job well done and have performance metrics to prove it, a merit increase should be expected, as well. Salaried employees for Ford haven’t seen a merit-based increase in pay since last year. Regardless of how well they performed their jobs, the Blue Oval just didn’t have enough money to invest back into its workforce. While Ford claims it’s hasn’t “completely turned the corner”, it’s doing well enough that merit-based pay increases are being reinstated this April.
According to The Detroit News, Ford is setting aside 2.7% of its total U.S. payroll for salaried workers so that it can dish out raises based on how well each employee has performed. Managers will get an automatic half percent pay increase, and bonuses will also be doled out. There’s a catch, though. Salaried employees will also be asked to be pay 24% more for their health insurance next year, an amount that breaks down to be between $20 and $25 per month, which TDN reports is more than the merit increase for most workers will cover. For their sake, hopefully Ford will turn the corner soon so these people can get paid.
[Source: The Detroit News]
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